If a Time Series Exhibits an Exponential Trend,then a Plot

question 25

True/False

If a time series exhibits an exponential trend,then a plot of its logarithm should be approximately linear.

---

Definitions:

Retained Earnings

Profits that a company keeps at the end of a fiscal period, after dividends are paid, for reinvestment or debt payment.

Additional Paid-in Capital

The amount of money that shareholders have paid in excess of the par value of the shares; this can occur when shares are initially sold or during subsequent capital injections.

Preferred Stock

A class of ownership in a corporation that typically provides dividend payments before dividends are issued to common stockholders, often with no voting rights.

Common Stock

A type of security that signifies ownership within a corporation, known as corporate equity ownership.